Asian stocks fluctuate based on Chinese data and bond sales – Asia Market Wrap

Asian stocks fluctuated between gains and losses, affected by dismal Chinese data and expectations that the country may begin selling ultra-long bonds.

Hong Kong’s equities benchmark rose to its highest level since August, while mainland-listed shares were generally weaker. The Japanese and Australian equity indexes both declined. According to sources, China’s 1 trillion yuan ($138 billion) ultra-long special bond issuance programme will begin on Friday and will eventually comprise debt with terms of 20, 30, and 50 years.

News of the upcoming debt issue lifted the mood after dismal Chinese data revealed over the weekend caused initial stock losses. The spectre of increased US-China trade hostilities intensified with a report on how much President Biden intends to hike duties on Chinese electric vehicles.

Japanese bonds sank as the central bank promised to buy less government debt than in prior auctions.

Investors are watching US policymakers’ comments for clues as to how long the Fed will keep interest rates elevated. Fed Bank of Dallas President Lorie Logan stated this week that it is still too early to consider decreasing borrowing costs, while Governor Michelle Bowman said she does not believe the Fed would drop rates in 2024.